There’s not much time left to organise your Asset Encumbrance reporting. The first reference date is 31st December, 2014, with a reporting deadline of 11th February, 2015. All firms subject to COREP reporting under the CRD IV mandate will have to submit an Asset Encumbrance report and, in common with all COREP disclosures, the new Asset Encumbrance report must be submitted as an XBRL document.
The EBA defines Asset Encumbrance as follows: “An asset shall be treated as encumbered if it has been pledged or if it is subject to any form of arrangement to secure, collateralise or credit enhance any transaction from which it cannot be freely withdrawn”. Therefore, the number of templates required will depend upon the size and nature of the reporting entity, but at least one template must be filed on a quarterly basis.
The good news is that CoreFiling’s cloud-based Seahorse® XBRL disclosure management product already contains all the required templates, reducing the stress for firms that now find they have to submit these new filings.
The EBA has now produced an official “black list” of rules that should be ignored. The full list can be found on the EBA website.
Helpfully, Magnify®, CoreFiling’s XBRL document review product, already has black list support, so that this list (or any further updates) can be incorporated in order to suppress the blacklisted formula.
The last public draft of the EBA’s model for implementing technical standards on supervisory reporting (the ITS) was issued on 15 March 2013. That was followed on 16 April with the approval of the CRD IV by the European Parliament. So the banks are expecting to have their data reporting systems ready by 1 January 2014 – but they can’t put them in place until the ITS has been finalised.
The EBA is expecting to deliver the ITS, to schedule, in good time for the banks to comply. But financial institutions wanting to start planning on the basis of the draft ITS are at risk unless they can be confident about the shape of the final version. Fortunately, help is at hand.
The EBA is supporting a major compliance conference, “Preparing for CRD IV Reporting” in London on 17 June. Andreas Weller, Head of IT at the EBA, and his colleagues Meri Rimmanen and Wolfgang Strohbach, will be present, with presentations covering their expectations for COREP and FINREP. The format of the sessions, with plenty of time for questions from the audience, will be ideal for in depth discussion of the features being planned for the final version. The conference will be a timely opportunity to put your questions to the authors of the ITS.
The EBA’s presentations will be followed by sessions with implementation experts from Deloitte, IBM and other firms covering the strategic issues around investments in compliance under the new regime.
For more details and registration: http://xbrl.org.uk/conference/
From 1 January 2014, banks will need to report thousands of additional risk and capital data points – a huge increase in frequency, volume and complexity when compared to previous reporting requirements.
Clarity on the regulation is vital to ensure the successful implementation of COREP and FINREP reporting under CRD IV. Step in ‘Preparing for CRD IV Reporting’. As the conference title suggests, the event aims to provide extensive support to the financial community pending the implementation of the reporting framework.
In the afternoon of June 17, the conference has scheduled two separate talks on COREP and FINREP to address the key challenges institutions face in adhering to the complex requirements of the new reporting framework. Meri Rimmanen and Wolfgang Strohbach from the European Banking Authority will provide an authoritative business overview of COREP and FINREP reporting.
Full details and registration for the 17 June event can be found at http://conference.eurofiling.info
The EBA recently published several consultations on draft guidelines and technical standards on their website: http://www.eba.europa.eu/Publications/Consultation-Papers/Open-to-responses.aspx